Clause 39

No futures broker shall open a futures contract account for a customer unless he furnishes the customer with a separate written risk disclosure document which shall be in such form and manner as may be prescribed by the Authority, and receives from the customer an acknowledgment signed and dated by the customer that he has received and understood the nature and contents of the disclosure document.

No futures pool operator shall directly or indirectly solicit, accept, or receive funds, securities or other property from a prospective participant in a pool that it operates or that it intends to operate unless on or before the date it engages in that activity the futures pool operator delivers or causes to be delivered to the prospective participant a risk disclosure document which shall be in such form and contain such information as the Authority may prescribe and receives from the prospective participant an acknowledgment signed and dated by him that he has received and understood the nature and contents of the disclosure document.

No futures trading adviser shall solicit or enter into an agreement with a prospective client for the purpose of managing his futures trading account or guiding the client’s futures trading by means of a systematic programme that recommends specific transactions unless the futures trading adviser at or before the time he engages in the solicitation or enters into the agreement (whichever is the earlier) delivers or causes to be delivered to the prospective client a risk disclosure document in respect of those purposes which shall be in such form and contain such information as the Authority may prescribe and receives from the prospective client an acknowledgment signed and dated by him that he has received and understood the nature and contents of the disclosure document.

Except as may be provided by any regulations made under this Act, no futures trading adviser shall solicit, accept or secure from an existing or prospective client money, securities or other property in the futures trading adviser’s name to purchase, margin, guarantee or secure any interest of the client in a futures contract.

Subsection (4) shall not apply to a futures broker who carries on the business of a futures trading adviser.